Italian governor calls for reform of NPL regulations

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Ignazio Visco, Bank of Italy

The governor of the Bank of Italy has called for reform of the way non-performing loans (NPLs) are dealt with in European banking regulation.

Some aspects of European regulation discourage banks from dealing with their NPLs, Ignazio Visco told an audience in Modena on January 28. European regulators could make an "important contribution" by "eliminating or limiting the measures that discourage banks with advanced internal ratings-based (A-IRB) models from selling their NPLs en bloc", Visco said

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